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Begin New Search Political Geography Eswatini Author Thabo Sacolo

1. Implications of migration to cost-reflective tariffs in Eswatini’s electricity sector

Author:
Mangaliso Mohammed and Thabo Sacolo
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
The study investigates the possible impacts of migrating to cost reflective tariffs in Eswatini’s electricity sector. This involves assessing the electricity consumptions patterns of the different electricity customer categories in relation to the electricity tariffs to estimate potential responses to future price changes that might be induced by cost-reflective tariffs. For the domestic customer category, the study uses the own-price elasticity method while for the non-domestic customer it estimates the elasticities using the Seemingly Unrelated Regression adopted from Inglesi-Lotz and Blignaut (2011). The study finds that a 2 cent real increase in electricity tariff is associated with a decrease in average consumption of 185.6 kWh for the domestic customer. Average elasticity over the 21-year period is -0.58 implying that domestic customers do not respond much to changes in electricity tariffs. For the non-residential customers, the industrial customer group is the only group significantly impacted by changes in electricity tariff. The elasticity coefficient for the industrial customer group is -0.157, which implies that even though this customer group responds to changes in electricity tariff, a proportionate increase in electricity price results in a less than proportionate decrease in electricity consumed. Overall, the study finds that demand for electricity for both domestic and non-domestic customer group is not responsive to changes in electricity tariff, that is, demand is inelastic. This means the cost reflective tariffs will most likely decrease intensive use of electricity in Eswatini, especially for low income households, which will make extending the grid and supplying electricity to low income households a much more expensive endeavour for the utility. The study recommends that before implementing the cost-reflective tariffs, the energy regulator (ESERA) should ensure that the utility (EEC) establishes efficiency improvements on the supply and distribution of electricity in Eswatini. In the long-run Eswatini should expedite national plans to increase local production of power to reduce the cost of power.
Topic:
Energy Policy, Migration, Borders, Tariffs, Local, and Electricity
Political Geography:
Africa and Eswatini

2. An Insight into Community-Based Ecotourism in Eswatini: Theory versus Practice

Author:
Tamika Du-Pont and Thabo Sacolo
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
The study provides a baseline of the performance of Community-based Ecotourism (CBET) ventures in Eswatini using primary data collected from 186 participants. The data was collected through face-to-face interviews amongst across five CBET sites. Descriptive and thematic analysis were used to identify; the benefits of CBET accrued to host communities, challenges communities experience in providing goods and services to CBET ventures, and the factors preventing broad based participation. Frequencies of responses were used to determine the perceptions and attitudes of host communities towards CBET. The study finds that many of the promises of CBET have not been fully met in Eswatini. Economic benefits have not been widespread and remain minimal, with approximately 42 jobs in total. Participants receive an average monthly income of E1457.40 ± 933.80, an indication of high disparities in monetary incentives amongst participants. The study finds that CBET has been a catalyst for infrastructural development within rural landscapes and provides participants with additional intangible benefits such as a sense of empowerment and belonging. Poor infrastructural maintenance, inadequate marketing and declining tourist visitations are major threats to the sustainability of CBET ventures. Efforts to augment the performance of CBET in Eswatini should focus on investment in research and monitoring of present and potential new CBET ventures. The study recommends integrated and inclusive policies that will promote and allow for expanded local production in the tourism supply chain, partnerships between host communities and industry experts, and local capacity enhancement to reignite CBET within the tourism sector as a serious contender for economic growth.
Topic:
Economics, Tourism, Employment, and Community
Political Geography:
Africa and Eswatini

3. Assessing the Impact of National Marketing Boards on Consumers and Producers’ Welfare

Author:
Thembumenzi Diamini, Mangaliso Mohammed, and Thabo Sacolo
Publication Date:
11-2017
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Food production in Swaziland has historically been insufficient, even after the introduction of National Marketing Boards. This is despite their mandate emphasised in the National Development Strategy (NDS) and Agriculture Sector Policy to develop smallholder agriculture through commercialisation, value addition and market access. The low food production coupled with high food prices and dependency on food imports increases the food-insecure population in the country. Hence, the study uses a Partial Equilibrium Model to assess the welfare impact of National Marketing Boards, in particular the National Maize Corporation (NMC) and Swaziland Dairy Board (SBD), on consumers and producers. The results show that over the five-year period, on average, the loss in maize per consumer was E94.22 per year, resulting in an average consumer loss of E116,975,312.30 per year. However, the average producer gains were E35,651,178.21; indicating that highly commercialised maize producers were benefiting from the NMC while consumers were losing through higher maize prices compared to what they would have received in a competitive environment. In the same period, on average, the milk producer gains were E35,545,181.85 while the consumer losses were E243,676,441.51 per year. This implies that commercial farmers are gaining at the expense of consumers. The average individual maize consumer losses amount to E197.90 per year. The study concludes that National Marketing Boards do contribute to low food production, high consumer prices, and economic losses. Therefore, it is recommended that policy makers need to design policies and strategies that comply with the heterogeneous markets in order to benefit consumers and producers.
Topic:
Agriculture, Food, Food Security, Welfare, and Service Marketing
Political Geography:
Africa and Eswatini